Taiwan Aerospace Woos Other Foreign Firms

Taiwan Aerospace Corp., whose plans for a multibillion-dollar link with McDonnell Douglas Corp. are under threat, said Wednesday that it is discussing possible joint ventures with other foreign aircraft makers.

Senior officials of Russia’s aerospace industry were in Taipei to discuss proposals for transferring technology to help Taiwan build aircraft, Taiwan Aerospace President Denny Ko told state radio, and British Aerospace Chairman John Cahill is due to visit Taipei today for talks on possible joint ventures.

The Russian officials proposed ventures to build helicopters, trainer aircraft and six-seat passenger planes, Ko said. He did not elaborate.

British Aerospace is interested in the possibility of co-producing medium-range passenger planes for sale in Asian markets, he said.

Taiwan Aerospace, founded last year with 29% government ownership, has also been talking to France’s Aerospatiale about a joint venture to build helicopters.

Government officials have said that Taiwan may turn to European companies to help develop its fledgling aerospace industry.

Taiwan Aerospace signed a preliminary pact last November to buy up to 40% of McDonnell’s commercial aircraft operations for $2 billion.

Under the tie-up, Taiwan would build wings and fuselage components for the St. Louis-based company’s MD-12 jumbo jet.

But the two sides have failed to reach final agreement, and Taiwan, citing the venture’s risks, has backed away from committing itself to a major equity stake.

McDonnell has insisted that an equity stake is necessary and rejected a new Taiwanese proposal to provide financial support through an aircraft leasing firm that would place advance orders for a large number of MD-12s.